81_FR_50043 81 FR 49897 - Amendments to Designated Areas

81 FR 49897 - Amendments to Designated Areas

DEPARTMENT OF THE INTERIOR
Office of Natural Resources Revenue

Federal Register Volume 81, Issue 146 (July 29, 2016)

Page Range49897-49898
FR Document2016-17599

ONRR convened two technical conferences on November 20, 2015 to discuss amending the boundaries of four of the designated areas it uses to calculate the index-based major portion prices in its regulations. At the technical conferences, the participants discussed issues regarding the appropriate boundary line between the North Fort Berthold and South Fort Berthold Designated Areas and adding additional counties to one or both of the two designated areas in the Uintah and Ouray Reservation.

Federal Register, Volume 81 Issue 146 (Friday, July 29, 2016) 
[Federal Register Volume 81, Number 146 (Friday, July 29, 2016)]
[Rules and Regulations]
[Pages 49897-49898]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17599]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Office of Natural Resources Revenue

30 CFR Parts 1206 and 1210

[Docket No. ONRR-2014-0001; DS63642000 DR2PS0000.CH7000167D0102R2]


Amendments to Designated Areas

AGENCY: Office of the Secretary, Office of Natural Resources Revenue 
(ONRR), Interior.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: ONRR convened two technical conferences on November 20, 2015 
to discuss amending the boundaries of four of the designated areas it 
uses to calculate the index-based major portion prices in its 
regulations. At the technical conferences, the participants discussed 
issues regarding the appropriate boundary line between the North Fort 
Berthold and South Fort Berthold Designated Areas and adding additional 
counties to one or both of the two designated areas in the Uintah and 
Ouray Reservation.

DATES: Effective: September 1, 2016.

FOR FURTHER INFORMATION CONTACT: Elizabeth Dawson, ONRR, telephone at 
(303) 231-3653, or email to [email protected].

SUPPLEMENTARY INFORMATION: With this final rule, ONRR amends the four 
designated areas to define them as follows:
    1. North Fort Berthold--all lands within the Fort Berthold 
Reservation boundary north of the Missouri River, including the Turtle 
Mountain public domain lease lands north of the Missouri River that the 
Fort Berthold Agency of the Bureau of Indian Affairs (BIA) administers, 
with the dividing line of the Missouri River being the county lines 
that follow the Missouri River.
    2. South Fort Berthold--all lands within the Fort Berthold 
Reservation boundary south of the Missouri River, including the Turtle 
Mountain public domain lease lands south of the Missouri River that the 
Fort Berthold Agency of the BIA administers, with the dividing line of 
the Missouri River being the county lines that follow the Missouri 
River.
    3. Uintah & Ouray--Emery, Uintah, and Grand Counties.
    4. Uintah & Ouray--Duchesne, Wasatch, and Carbon Counties.
    Under the new Indian Oil Valuation Amendments to 30 CFR 1206.54 (80 
FR 24794 dated May 1, 2015), ONRR uses designated areas to calculate 
index-based major portion prices for lessees to comply with the major 
portion provisions in their leases. Designated areas are those areas 
ONRR identifies as unique based on their location and the crude type 
produced from their respective Indian lands.
    When ONRR proposed the new Indian Oil Valuation Amendments, it 
proposed sixteen initial designated areas. Generally, these designated 
areas were the Indian reservation boundaries. However, there were five 
designated areas which were not the reservation boundaries: Oklahoma; 
North Fort Berthold; South Fort Berthold; Uintah & Ouray: Uintah and 
Grand Counties; and Uintah and Ouray: Duchesne County.
    Under the new Indian Oil Valuation Amendments, to modify or change 
an existing designated area, ONRR must convene a technical conference. 
In implementing the new Indian Oil Valuation Amendments, ONRR 
discovered two potential issues. First, the preamble describes the 
dividing line between the North Fort Berthold Designated Area and the 
South Fort Berthold Designated Area as the Little Missouri River. 
Second, ONRR found at

[[Page 49898]]

least one producing Indian lease that is in Wasatch County in the 
Uintah and Ouray Reservation, which is outside of both of the 
designated areas listed in the Uintah and Ouray Reservation. ONRR also 
identified two other counties--Carbon and Emery Counties--in the Uintah 
and Ouray Reservation that were not in the listed designated areas that 
do not currently have Indian leases but could in the future.
    To address these issues, ONRR held two technical conferences. ONRR 
published notice of the technical conferences in the Federal Register 
on October 29, 2015. 80 FR 66417. The first technical conference was 
held in person on November 20, 2015, at 9:00 a.m., Mountain Time in 
Denver, Colorado, at the Office of Natural Resources Revenue, Denver 
Federal Center, 6th Avenue and Kipling Street, Building 85, Auditoriums 
A-D, Denver, Colorado 80226. The second technical conference was a 
teleconference on November 20, 2015, at 2:00 p.m. Mountain Time. 
Fifteen people attended the technical conferences, of which seven were 
from ONRR, three from Tribes, and five from industry.
    ONRR also solicited comments on the proposed changes through 
November 30, 2015. On February 17, 2016, ONRR consulted with the Ute 
Indian Tribe on adding the Wasatch, Carbon, and Emery Counties to the 
two Uintah and Ouray Designated Areas. Also, on March 4, 2016, ONRR 
consulted with representatives of the Three Affiliated Tribes on 
changing the boundary line between the North Fort Berthold and South 
Fort Berthold Designated Areas.
    Public Comments: Generally, the parties attending the technical 
conference and consultations agreed with ONRR's proposal to modify the 
definition of the (1) Uintah and Ouray Designated Areas to include 
Wasatch, Carbon, and Emery Counties; and (2) North Fort Berthold and 
South Fort Berthold Designated Areas to use the Missouri River as the 
boundary line between the two designated areas rather than the Little 
Missouri River. ONRR received three additional comments: One from 
industry, one from an individual Indian mineral owner, and one from a 
Tribe.
    Public Comment: The individual Indian mineral owner sent a comment 
stating he did not support dividing the Fort Berthold Reservation into 
two designated areas for five reasons: (1) The idea of selling price by 
field is an anachronism; (2) the price must be the highest in the world 
wherever that may be because industry uses the tax code, hedging, 
swaps, etc. in order to obtain the highest price; (3) this attempt to 
reduce price is a taking under Hodel because this regulation denies the 
beneficiary the difference between the market rate and major portion; 
(4) there is no basis for allowing a transportation deduction because 
typical carriers charge consumers for transportation rather than the 
mineral owner; and (5) North Dakota recovered millions because 
deductions were not in their leases and, likewise, Indian leases do not 
authorize this illegality.
    ONRR Response: The technical conference was simply to discuss 
amending the Fort Berthold designated areas to use the Missouri River 
rather than the Little Missouri River to divide the two designated 
areas. These comments apply to the Indian Oil Valuation Amendments as a 
whole and do not directly relate to the appropriate boundary for the 
two Fort Berthold designated areas. ONRR addressed comments similar to 
the one above in the preamble of the final rule, which can be found at 
80 FR 24,794 (May 1, 2015).
    Public Comment: The industry commenter suggested that ONRR take 
this opportunity to divide the Fort Berthold Reservation into three 
designated areas: The first designated area would include lands north 
of the Missouri River, the second would include the lands south of the 
Missouri River and north of the Little Missouri River, and the third 
would include the lands south of the Little Missouri River. The 
commenter believes the available transportation infrastructures support 
dividing the Fort Berthold Reservation into three designated areas 
because the lands north of the Little Missouri River have evolving 
pipeline facilities that can transport production from the lease, 
whereas leases south of the Little Missouri River do not have the same 
available infrastructure.
    ONRR Response: Dividing the Fort Berthold into two designated areas 
was a compromise negotiated by the Indian Oil Negotiated Rulemaking 
Committee (Committee). Generally, industry advocated using specific 
fields as designated areas. Alternatively, Tribes and individual Indian 
mineral owners promoted a broader area. Ultimately, the Committee 
agreed to divide Fort Berthold into two designated areas as a 
compromise. To date, ONRR has found no reason to ignore the conclusions 
of the Committee.
    The final rule and the preamble of the proposed rule specifically 
allow lessees/operators, Tribes, and Indian mineral owners to petition 
ONRR to convene a technical conference to review, modify, or add 
designated areas where there is a significant change that affects the 
location and quality differentials. The rule has not yet been in effect 
for a period of time sufficient to demonstrate that there has been a 
significant change in the market on the Fort Berthold Reservation. 
Should the markets change in the future, the lessees/operators, Tribes, 
or individual Indian mineral owners can petition ONRR to change the 
designated areas in the future. The purpose of this technical 
conference was to change the boundary between the two Fort Berthold 
designated areas, not to add another designated area. Therefore, adding 
a designated area was outside the scope of this technical conference.
    Public Comment: The Ute Indian Tribe indicated it would prefer to 
have Wasatch and Carbon Counties added to the Uintah & Ouray-Duchesne 
County Designated Area and Emery County added to the Uintah & Ouray-
Grand and Uintah Counties Designated Area. The Tribe indicated the 
infrastructure on the Uintah & Ouray Reservation supported this 
configuration.
    ONRR Response: ONRR agrees with this comment and has modified the 
definition of the two designated areas in the Uintah and Ouray 
Reservation by adding Wasatch and Carbon Counties to the Uintah & 
Ouray-Duchesne County Designated Area and Emery County the Uintah & 
Ouray-Grand and Uintah Counties Designated Area.

    Dated: June 28, 2016.
Gregory J. Gould,
Director, Office of Natural Resources Revenue.
[FR Doc. 2016-17599 Filed 7-28-16; 8:45 am]
 BILLING CODE 4335-30-P

Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations 49897 PART 184—DIRECT FOOD PART 710—VOLUNTARY DATES: Effective: September 1, 2016. SUBSTANCES AFFIRMED AS REGISTRATION OF COSMETIC FOR FURTHER INFORMATION CONTACT: GENERALLY RECOGNIZED AS SAFE PRODUCT ESTABLISHMENTS Elizabeth Dawson, ONRR, telephone at (303) 231–3653, or email to ■ 59. The authority citation for part 184 ■ 71. The authority citation for part 710 lisa.dawson@onrr.gov. continues to read as follows: continues to read as follows: SUPPLEMENTARY INFORMATION: With this Authority: 21 U.S.C. 321, 342, 348, 371. Authority: 21 U.S.C. 321, 331, 361, 362, final rule, ONRR amends the four ■ 60. In part 184, revise all references to 371, 374. designated areas to define them as ‘‘5100 Paint Branch Pkwy.’’ to read ■ 72. In part 710, revise all references to follows: ‘‘5001 Campus Dr.’’. ‘‘5100 Paint Branch Pkwy.’’ to read 1. North Fort Berthold—all lands ‘‘5001 Campus Dr.’’. within the Fort Berthold Reservation PART 189—SUBSTANCES PART 720—VOLUNTARY FILING OF boundary north of the Missouri River, PROHIBITED FROM USE IN HUMAN COSMETIC PRODUCT INGREDIENT including the Turtle Mountain public FOOD COMPOSITION STATEMENTS domain lease lands north of the ■ 61. The authority citation for part 189 Missouri River that the Fort Berthold continues to read as follows: ■ 73. The authority citation for part 720 Agency of the Bureau of Indian Affairs continues to read as follows: (BIA) administers, with the dividing Authority: 21 U.S.C. 321, 342, 348, 371, 381. Authority: 21 U.S.C. 321, 331, 361, 362, line of the Missouri River being the ■ 62. In part 189, revise all references to 371, 374. county lines that follow the Missouri ‘‘5100 Paint Branch Pkwy.’’ to read ■ 74. In part 720, revise all references to River. ‘‘5001 Campus Dr.’’. ‘‘5100 Paint Branch Pkwy.’’ to read 2. South Fort Berthold—all lands ‘‘5001 Campus Dr.’’. within the Fort Berthold Reservation PART 190—DIETARY SUPPLEMENTS boundary south of the Missouri River, PART 1250—INTERSTATE including the Turtle Mountain public ■ 63. The authority citation for part 190 CONVEYANCE SANITATION domain lease lands south of the continues to read as follows: Missouri River that the Fort Berthold ■ 75. The authority citation for part Authority: Secs. 201(ff), 301, 402, 413, 701 Agency of the BIA administers, with the 1250 continues to read as follows: of the Federal Food, Drug, and Cosmetic Act dividing line of the Missouri River being (21 U.S.C. 321(ff), 331, 342, 350b, 371). Authority: 42 U.S.C. 216, 243, 264, 271. the county lines that follow the ■ 64. In part 190, revise all references to ■ 76. In part 1250, revise all references Missouri River. ‘‘5100 Paint Branch Pkwy.’’ to read to ‘‘5100 Paint Branch Pkwy.’’ to read 3. Uintah & Ouray—Emery, Uintah, ‘‘5001 Campus Dr.’’. ‘‘5001 Campus Dr.’’. and Grand Counties. Dated: July 21, 2016. 4. Uintah & Ouray—Duchesne, PART 211—CURRENT GOOD Wasatch, and Carbon Counties. Leslie Kux, MANUFACTURING PRACTICE FOR Under the new Indian Oil Valuation FINISHED PHARMACEUTICALS Associate Commissioner for Policy. Amendments to 30 CFR 1206.54 (80 FR [FR Doc. 2016–17658 Filed 7–28–16; 8:45 am] ■ 65. The authority citation for part 211 24794 dated May 1, 2015), ONRR uses BILLING CODE 4164–01–P continues to read as follows: designated areas to calculate index- based major portion prices for lessees to Authority: 21 U.S.C. 321, 351, 352, 355, comply with the major portion 360b, 371, 374; 42 U.S.C. 216, 262, 263a, 264. DEPARTMENT OF THE INTERIOR provisions in their leases. Designated ■ 66. In part 211, revise all references to areas are those areas ONRR identifies as ‘‘5100 Paint Branch Pkwy.’’ to read Office of Natural Resources Revenue unique based on their location and the ‘‘5001 Campus Dr.’’. crude type produced from their 30 CFR Parts 1206 and 1210 respective Indian lands. PART 507—CURRENT GOOD [Docket No. ONRR–2014–0001; DS63642000 When ONRR proposed the new Indian MANUFACTURING PRACTICE, DR2PS0000.CH7000167D0102R2] Oil Valuation Amendments, it proposed HAZARD ANALYSIS, AND RISK– sixteen initial designated areas. BASED PREVENTIVE CONTROLS FOR Amendments to Designated Areas Generally, these designated areas were FOOD FOR ANIMALS AGENCY: Office of the Secretary, Office the Indian reservation boundaries. ■ 67. The authority citation for part 507 of Natural Resources Revenue (ONRR), However, there were five designated continues to read as follows: Interior. areas which were not the reservation Authority: 21 U.S.C. 331, 342, 343, 350d ACTION: Final rule. boundaries: Oklahoma; North Fort note, 350g, 350g note, 371, 374; 42 U.S.C. Berthold; South Fort Berthold; Uintah & 243, 264, 271. SUMMARY: ONRR convened two Ouray: Uintah and Grand Counties; and ■ 68. In part 507, revise all references to technical conferences on November 20, Uintah and Ouray: Duchesne County. ‘‘5100 Paint Branch Pkwy.’’ to read 2015 to discuss amending the Under the new Indian Oil Valuation ‘‘5001 Campus Dr.’’. boundaries of four of the designated Amendments, to modify or change an areas it uses to calculate the index-based existing designated area, ONRR must PART 701—COSMETIC LABELING major portion prices in its regulations. convene a technical conference. In asabaliauskas on DSK3SPTVN1PROD with RULES At the technical conferences, the implementing the new Indian Oil ■ 69. The authority citation for part 701 participants discussed issues regarding Valuation Amendments, ONRR continues to read as follows: the appropriate boundary line between discovered two potential issues. First, Authority: 21 U.S.C. 321, 352, 361, 362, the North Fort Berthold and South Fort the preamble describes the dividing line 363, 371, 374; 15 U.S.C. 1454, 1455. Berthold Designated Areas and adding between the North Fort Berthold ■ 70. In part 701, revise all references to additional counties to one or both of the Designated Area and the South Fort ‘‘5100 Paint Branch Pkwy.’’ to read two designated areas in the Uintah and Berthold Designated Area as the Little ‘‘5001 Campus Dr.’’. Ouray Reservation. Missouri River. Second, ONRR found at VerDate Sep<11>2014 17:04 Jul 28, 2016 Jkt 238001 PO 00000 Frm 00043 Fmt 4700 Sfmt 4700 E:\FR\FM\29JYR1.SGM 29JYR1

49898 Federal Register / Vol. 81, No. 146 / Friday, July 29, 2016 / Rules and Regulations least one producing Indian lease that is reduce price is a taking under Hodel location and quality differentials. The in Wasatch County in the Uintah and because this regulation denies the rule has not yet been in effect for a Ouray Reservation, which is outside of beneficiary the difference between the period of time sufficient to demonstrate both of the designated areas listed in the market rate and major portion; (4) there that there has been a significant change Uintah and Ouray Reservation. ONRR is no basis for allowing a transportation in the market on the Fort Berthold also identified two other counties— deduction because typical carriers Reservation. Should the markets change Carbon and Emery Counties—in the charge consumers for transportation in the future, the lessees/operators, Uintah and Ouray Reservation that were rather than the mineral owner; and (5) Tribes, or individual Indian mineral not in the listed designated areas that do North Dakota recovered millions owners can petition ONRR to change the not currently have Indian leases but because deductions were not in their designated areas in the future. The could in the future. leases and, likewise, Indian leases do purpose of this technical conference To address these issues, ONRR held not authorize this illegality. was to change the boundary between the two technical conferences. ONRR ONRR Response: The technical two Fort Berthold designated areas, not published notice of the technical conference was simply to discuss to add another designated area. conferences in the Federal Register on amending the Fort Berthold designated Therefore, adding a designated area was October 29, 2015. 80 FR 66417. The first areas to use the Missouri River rather outside the scope of this technical technical conference was held in person than the Little Missouri River to divide conference. on November 20, 2015, at 9:00 a.m., the two designated areas. These Public Comment: The Ute Indian Mountain Time in Denver, Colorado, at comments apply to the Indian Oil Tribe indicated it would prefer to have the Office of Natural Resources Valuation Amendments as a whole and Wasatch and Carbon Counties added to Revenue, Denver Federal Center, 6th do not directly relate to the appropriate the Uintah & Ouray–Duchesne County Avenue and Kipling Street, Building 85, boundary for the two Fort Berthold Designated Area and Emery County Auditoriums A–D, Denver, Colorado designated areas. ONRR addressed added to the Uintah & Ouray–Grand and 80226. The second technical conference comments similar to the one above in Uintah Counties Designated Area. The was a teleconference on November 20, the preamble of the final rule, which Tribe indicated the infrastructure on the 2015, at 2:00 p.m. Mountain Time. can be found at 80 FR 24,794 (May 1, Uintah & Ouray Reservation supported Fifteen people attended the technical 2015). this configuration. conferences, of which seven were from Public Comment: The industry ONRR Response: ONRR agrees with ONRR, three from Tribes, and five from commenter suggested that ONRR take this comment and has modified the industry. this opportunity to divide the Fort definition of the two designated areas in ONRR also solicited comments on the Berthold Reservation into three the Uintah and Ouray Reservation by proposed changes through November designated areas: The first designated adding Wasatch and Carbon Counties to 30, 2015. On February 17, 2016, ONRR area would include lands north of the the Uintah & Ouray–Duchesne County consulted with the Ute Indian Tribe on Missouri River, the second would Designated Area and Emery County the adding the Wasatch, Carbon, and Emery include the lands south of the Missouri Uintah & Ouray–Grand and Uintah Counties to the two Uintah and Ouray River and north of the Little Missouri Counties Designated Area. Designated Areas. Also, on March 4, River, and the third would include the 2016, ONRR consulted with lands south of the Little Missouri River. Dated: June 28, 2016. representatives of the Three Affiliated The commenter believes the available Gregory J. Gould, Tribes on changing the boundary line transportation infrastructures support Director, Office of Natural Resources between the North Fort Berthold and dividing the Fort Berthold Reservation Revenue. South Fort Berthold Designated Areas. into three designated areas because the [FR Doc. 2016–17599 Filed 7–28–16; 8:45 am] Public Comments: Generally, the lands north of the Little Missouri River BILLING CODE 4335–30–P parties attending the technical have evolving pipeline facilities that can conference and consultations agreed transport production from the lease, with ONRR’s proposal to modify the whereas leases south of the Little definition of the (1) Uintah and Ouray Missouri River do not have the same DEPARTMENT OF HOMELAND Designated Areas to include Wasatch, available infrastructure. SECURITY Carbon, and Emery Counties; and (2) ONRR Response: Dividing the Fort North Fort Berthold and South Fort Berthold into two designated areas was Coast Guard Berthold Designated Areas to use the a compromise negotiated by the Indian Missouri River as the boundary line Oil Negotiated Rulemaking Committee 33 CFR Part 117 between the two designated areas rather (Committee). Generally, industry [Docket No. USCG–2016–0668] than the Little Missouri River. ONRR advocated using specific fields as received three additional comments: designated areas. Alternatively, Tribes Drawbridge Operation Regulation; One from industry, one from an and individual Indian mineral owners James River, Hopewell, VA individual Indian mineral owner, and promoted a broader area. Ultimately, the one from a Tribe. Committee agreed to divide Fort AGENCY: Coast Guard, DHS. Public Comment: The individual Berthold into two designated areas as a ACTION:Notice of deviation from Indian mineral owner sent a comment compromise. To date, ONRR has found drawbridge regulations. stating he did not support dividing the no reason to ignore the conclusions of asabaliauskas on DSK3SPTVN1PROD with RULES Fort Berthold Reservation into two the Committee. SUMMARY: The Coast Guard has issued a designated areas for five reasons: (1) The The final rule and the preamble of the temporary deviation from the operating idea of selling price by field is an proposed rule specifically allow lessees/ schedule that governs the SR 156/ anachronism; (2) the price must be the operators, Tribes, and Indian mineral Benjamin Harrison Memorial Bridge highest in the world wherever that may owners to petition ONRR to convene a across the James River, mile 65.0, at be because industry uses the tax code, technical conference to review, modify, Hopewell, VA. The deviation is hedging, swaps, etc. in order to obtain or add designated areas where there is necessary to facilitate bridge the highest price; (3) this attempt to a significant change that affects the maintenance and repairs. This deviation VerDate Sep<11>2014 17:04 Jul 28, 2016 Jkt 238001 PO 00000 Frm 00044 Fmt 4700 Sfmt 4700 E:\FR\FM\29JYR1.SGM 29JYR1


Document Created: 2018-02-08 07:51:20
Document Modified: 2018-02-08 07:51:20
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesEffective: September 1, 2016.
ContactElizabeth Dawson, ONRR, telephone at (303) 231-3653, or email to [email protected]
FR Citation81 FR 49897 
CFR Citation30 CFR 1206
30 CFR 1210
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR